Class Claims Filed Against Crypto Investment Ponzi Scheme

On January 24, 2018, investors in crypto trading company, BitConnect, filed class claims against the company in the U.S. District Court for the Southern District of Florida.

The six named plaintiffs—Charles Wildes, Francisco Doria, Aric Harold, Akiva Katz, James Gurry and Ronald Nelson—allege that they have collectively lost a total of $771,000 through investments made in BitConnect. Plaintiffs claim that the crypto currency tokens that the defendant issued in exchange for actual currency were in reality just unregistered securities. Plaintiffs claims that, like a Ponzi scheme, BitConnect maintained a façade of profitability by fulfilling promises made to existing investors with funds supplied to the site by new investors. BitConnect was launched in February 2016 and shut down on January 17, 2018.